----

----

| [ü] | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------|---------------------------------------------------------------------------------------------------|
|     | For      the quarterly period ended March 31, 2009                                                |
|  OR |                                                                                              |

| [   ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------------------|----------------------------------------------------------------------------------------------------|
|                 | For      the transition period from ___________ to  __________                                     |

----

| Minnesota                                                           | 41-0572550                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |

----

| Yes | ü | No |   |
|-----|--------|----|--------|

| Yes |  | No |   |
|-----|--|----|--------|

| Large      accelerated filer  |   |                                                     | Accelerated      filer         | ü |
|------------------------------------|--------|----------------------------------------------------------|--------------------------------|--------|
| Non-accelerated      filer    |   |  (Do      not check if a smaller reporting company) | Smaller      reporting company |   |

| Yes |   | No | ü |
|-----|--------|----|--------|

----

----

TABLE

| PART      I – Financial Information   | Page         |
|---------------------------------------------|--------------|
|                                        | Item      1  | Financial Statements |   |
|                                        |         | Condensed Consolidated Statements of      Operations | 3 |
|                                        |         | Condensed Consolidated Balance      Sheets | 4 |
|                                        |         | Condensed Consolidated Statements of Cash      Flows | 5 |
|                                        |         | Notes to Condensed Consolidated Financial      Statements | 6 |
|                                        | Item      2  | Management’s Discussion and Analysis of Financial Condition      and Results of Operations | 17 |
|                                        | Item      3  | Quantitative and Qualitative Disclosures About Market      Risk | 24 |
|                                        | Item      4  | Controls and Procedures | 25 |
|                                        |         |   |   |
| PART II – Other      Information |         |
|                                        | Item      1  | Legal Proceedings | 26 |
|                                        | Item      1A | Risk Factors | 26 |
|                                        | Item      2  | Unregistered Sales of Equity Securities and Use of      Proceeds | 26 |
|                                        | Item      6  | Exhibits | 27 |

----

table of contents

P

CONDEN

|                                             |   | Three      Months Ended |       |
|--------------------------------------------------|--------|-------------------------|------------|
|                                             |   | March      31           |       |
|                                             |   | 2009                    |       |   | 2008 |   |
| Net      Sales                                   |   | $                       | 128,647    |   |   | $ | 168,600 |   |
| Cost      of Sales                               |   |                    | 75,922     |   |   |   | 98,960 |   |
| Gross      Profit                                |   |                    | 52,725     |   |   |   | 69,640 |   |
| Operating      Expense:                          |   |                    |       |   |   |   |   |   |
| Research      and Development Expense            |   |                    | 5,692      |   |   |   | 6,038 |   |
| Selling      and Administrative Expense          |   |                    | 45,460     |   |   |   | 55,079 |   |
| Goodwill      Impairment Charge                  |   |                    | 43,363     |   |   |   | - |   |
| Total      Operating Expenses                    |   |                    | 94,515     |   |   |   | 61,117 |   |
| Profit      (Loss) from Operations               |   |                    | (41,790    | ) |   |   | 8,523 |   |
| Other      Income (Expense):                     |   |                    |       |   |   |   |   |   |
| Interest      Income                             |   |                    | 111        |   |   |   | 313 |   |
| Interest      Expense                            |   |                    | (652       | ) |   |   | (488 | ) |
| Foreign      Currency Transaction Gains (Losses) |   |                    | (361       | ) |   |   | (759 | ) |
| ESOP      Income                                 |   |                    | 243        |   |   |   | 702 |   |
| Other      Income (Expense), Net                 |   |                    | 20         |   |   |   | 5 |   |
| Total      Other Income (Expense), Net           |   |                    | (639       | ) |   |   | (227 | ) |
|                                             |   |                    |       |   |   |   |   |   |
| Profit      (Loss) Before Income Taxes           |   |                    | (42,429    | ) |   |   | 8,296 |   |
| Income      Tax Expense (Benefit)                |   |                    | (683       | ) |   |   | 3,061 |   |
| Net      Earnings (Loss)                         |   | $                       | (41,746    | ) |   | $ | 5,235 |   |
|                                             |   |                    |       |   |   |   |   |   |
| Earnings      (Loss) per Share:                  |   |                    |       |   |   |   |   |   |
| Basic                                            |   | $                       | (2.29      | ) |   | $ | 0.28 |   |
| Diluted                                          |   | $                       | (2.29      | ) |   | $ | 0.28 |   |
|                                             |   |                    |       |   |   |   |   |   |
| Weighted      Average Shares Outstanding:        |   |                    |       |   |   |   |   |   |
| Basic                                            |   |                    | 18,262,257 |   |   |   | 18,441,002 |   |
| Diluted                                          |   |                    | 18,262,257 |   |   |   | 18,844,504 |   |
|                                             |   |                    |       |   |   |   |   |   |
| Cash      Dividend Declared per Common Share     |   | $                       | 0.13       |   |   | $ | 0.13 |   |

----

table of contents

CONDE

|                                                                                                                                          |   | March      31, |     |   | December      31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|----------|--------|-------------------|--------|
|                                                                                                                                          |   | 2009           |     |   | 2008              |   |
| ASSETS                                                                                                                                        |   |           |     |   |              |   |
| Current      Assets:                                                                                                                          |   |           |     |   |              |   |
| Cash      and Cash Equivalents                                                                                                                |   | $              | 26,699   |   |              | $      | 29,285 |   |
| Receivables,      less Allowances of $6,166 and $7,319, respectively                                                                          |   |           | 102,082  |   |              |   | 123,812 |   |
| Inventories                                                                                                                                   |   |           | 66,763   |   |              |   | 66,828 |   |
| Prepaid      Expenses                                                                                                                         |   |           | 19,243   |   |              |   | 18,131 |   |
| Deferred      Income Taxes, Current Portion                                                                                                   |   |           | 9,618    |   |              |   | 12,048 |   |
| Other      Current Assets                                                                                                                     |   |           | 283      |   |              |   | 315 |   |
| Total      Current Assets                                                                                                                     |   |           | 224,688  |   |              |   | 250,419 |   |
| Property,      Plant and Equipment                                                                                                            |   |           | 282,409  |   |              |   | 278,812 |   |
| Accumulated      Depreciation                                                                                                                 |   |           | (180,402 | )      |              |   | (175,082 | ) |
| Property,      Plant and Equipment, Net                                                                                                       |   |           | 102,007  |   |              |   | 103,730 |   |
| Deferred      Income Taxes, Long-Term Portion                                                                                                 |   |           | 6,056    |   |              |   | 6,388 |   |
| Goodwill                                                                                                                                      |   |           | 19,036   |   |              |   | 62,095 |   |
| Intangible      Assets, Net                                                                                                                   |   |           | 27,376   |   |              |   | 28,741 |   |
| Other      Assets                                                                                                                             |   |           | 6,493    |   |              |   | 5,231 |   |
| Total      Assets                                                                                                                             |   | $              | 385,656  |   |              | $      | 456,604 |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                                               |   |           |     |   |              |   |   |   |
| Current      Liabilities:                                                                                                                     |   |           |     |   |              |   |   |   |
| Current      Debt                                                                                                                             |   | $              | 4,253    |   |              | $      | 3,946 |   |
| Accounts      Payable                                                                                                                         |   |           | 25,483   |   |              |   | 26,536 |   |
| Employee      Compensation and Benefits                                                                                                       |   |           | 17,934   |   |              |   | 23,334 |   |
| Income      Taxes Payable                                                                                                                     |   |           | 2,542    |   |              |   | 3,154 |   |
| Other      Current Liabilities                                                                                                                |   |           | 36,869   |   |              |   | 50,189 |   |
| Total      Current Liabilities                                                                                                                |   |           | 87,081   |   |              |   | 107,159 |   |
| Long-Term      Liabilities:                                                                                                                   |   |           |     |   |              |   |   |   |
| Long-Term      Debt                                                                                                                           |   |           | 87,634   |   |              |   | 91,393 |   |
| Employee-Related      Benefits                                                                                                                |   |           | 28,494   |   |              |   | 29,059 |   |
| Deferred      Income Taxes, Long-Term Portion                                                                                                 |   |           | 9,435    |   |              |   | 11,671 |   |
| Other      Liabilities                                                                                                                        |   |           | 7,328    |   |              |   | 7,418 |   |
| Total      Long-Term Liabilities                                                                                                              |   |           | 132,891  |   |              |   | 139,541 |   |
| Total      Liabilities                                                                                                                        |   |           | 219,972  |   |              |   | 246,700 |   |
| Shareholders'      Equity:                                                                                                                    |   |           |     |   |              |   |   |   |
| Preferred      Stock, $0.02 par value; 1,000,000 shares authorized; no shares issued or      outstanding                                      |   |           | -        |   |              |   | - |   |
| Common      Stock, $0.375 par value; 60,000,000 shares authorized; 18,622,921 and      18,284,746 shares issued and outstanding, respectively |   |           | 6,984    |   |              |   | 6,857 |   |
| Additional      Paid-In Capital                                                                                                               |   |           | 6,566    |   |              |   | 6,649 |   |
| Retained      Earnings                                                                                                                        |   |           | 182,299  |   |              |   | 223,692 |   |
| Accumulated      Other Comprehensive Income (Loss)                                                                                            |   |           | (29,015  | )      |              |   | (26,391 | ) |
| Receivable      from ESOP                                                                                                                     |   |           | (1,150   | )      |              |   | (903 | ) |
| Total      Shareholders’ Equity                                                                                                         |   |           | 165,684  |   |              |   | 209,904 |   |
| Total      Liabilities and Shareholders’ Equity                                                                                         |   | $              | 385,656  |   |              | $      | 456,604 |   |
|                                                                                                                                          |   |           |     |   |              |   |   |   |

----

table of contents

COND

|                                                                                         |   | Three      Months Ended |    |
|----------------------------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                                         |   | March      31           |    |
|                                                                                         |   | 2009                    |    |   | 2008 |   |
| OPERATING      ACTIVITIES                                                                    |   |                    |    |   |   |   |
| Net      Earnings (Loss)                                                                     |   | $                       | (41,746 | ) |   | $ | 5,235 |   |
| Adjustments      to Net Earnings (Loss) to Arrive at Operating Cash Flow:                    |   |                    |    |   |   |   |   |   |
| Depreciation                                                                                 |   |                    | 5,356   |   |   |   | 4,307 |   |
| Amortization                                                                                 |   |                    | 639     |   |   |   | 458 |   |
| Deferred      Tax Expense (Benefit)                                                          |   |                    | 595     |   |   |   | 420 |   |
| Goodwill      Impairment Charge                                                              |   |                    | 43,363  |   |   |   | - |   |
| Stock-Based      Compensation Expense                                                        |   |                    | 286     |   |   |   | 555 |   |
| ESOP      Income                                                                             |   |                    | (27     | ) |   |   | (204 | ) |
| Tax      Benefit on ESOP                                                                     |   |                    | 3       |   |   |   | 9 |   |
| Allowance      for Doubtful Accounts and Returns                                             |   |                    | 166     |   |   |   | 233 |   |
| Other,      Net                                                                              |   |                    | 1,376   |   |   |   | 843 |   |
| Changes      in Operating Assets and Liabilities, Excluding the Impact of      Acquisitions: |   |                    |    |   |   |   |   |   |
| Accounts      Receivable                                                                     |   |                    | 21,149  |   |   |   | (696 | ) |
| Inventories                                                                                  |   |                    | (2,536  | ) |   |   | (5,966 | ) |
| Accounts      Payable                                                                        |   |                    | 1,945   |   |   |   | (6,096 | ) |
| Employee      Compensation and Benefits and Other Accrued Expenses                           |   |                    | (15,456 | ) |   |   | (9,938 | ) |
| Income      Taxes Payable/Prepaid                                                            |   |                    | (2,300  | ) |   |   | 400 |   |
| Other      Assets and Liabilities                                                            |   |                    | (1,640  | ) |   |   | 4,553 |   |
| Net      Cash Provided by (Used for) Operating Activities                                    |   |                    | 11,173  |   |   |   | (5,887 | ) |
| INVESTING      ACTIVITIES                                                                    |   |                    |    |   |   |   |   |   |
| Purchases      of Property, Plant and Equipment                                              |   |                    | (3,824  | ) |   |   | (7,408 | ) |
| Proceeds      from Disposals of Property, Plant and Equipment                                |   |                    | 263     |   |   |   | - |   |
| Acquisition      of Businesses, Net of Cash Acquired                                         |   |                    | (2,295  | ) |   |   | (81,365 | ) |
| Net      Cash Flows Provided by (Used for) Investing Activities                              |   |                    | (5,856  | ) |   |   | (88,773 | ) |
| FINANCING      ACTIVITIES                                                                    |   |                    |    |   |   |   |   |   |
| Payments      on Capital Leases                                                              |   |                    | (1,092  | ) |   |   | (786 | ) |
| Change      in Short-Term Debt, Net                                                          |   |                    | (1      | ) |   |   | 4,795 |   |
| Payment      of Long-Term Debt                                                               |   |                    | (10,006 | ) |   |   | - |   |
| Issuance      of Long-Term Debt                                                              |   |                    | 6,000   |   |   |   | 87,500 |   |
| Purchases      of Common Stock                                                               |   |                    | -       |   |   |   | (3,593 | ) |
| Proceeds      from Issuance of Common Stock                                                  |   |                    | -       |   |   |   | 808 |   |
| Tax      Benefit on Stock Plans                                                              |   |                    | (147    | ) |   |   | 232 |   |
| Dividends      Paid                                                                          |   |                    | (2,381  | ) |   |   | (2,409 | ) |
| Net      Cash Flows Provided by (Used for) Financing Activities                              |   |                    | (7,627  | ) |   |   | 86,547 |   |
|                                                                                         |   |                    |    |   |   |   |   |   |
| Effect      of Exchange Rate Changes on Cash and Cash Equivalents                            |   |                    | (276    | ) |   |   | 312 |   |
| Net      Increase (Decrease) in Cash and Cash Equivalents                                    |   |                    | (2,586  | ) |   |   | (7,801 | ) |
| Cash      and Cash Equivalents at Beginning of Period                                        |   |                    | 29,285  |   |   |   | 33,092 |   |
| Cash      and Cash Equivalents at End of Period                                              |   | $                       | 26,699  |   |   | $ | 25,291 |   |
| SUPPLEMENTAL      CASH FLOW INFORMATION                                                      |   |                    |    |   |   |   |   |   |
| Cash      Paid During the Year for:                                                          |   |                    |    |   |   |   |   |   |
| Income      Taxes                                                                            |   | $                       | 1,128   |   |   | $ | 758 |   |
| Interest                                                                                     |   | $                       | 367     |   |   | $ | 378 |   |
| Supplemental      Non-cash Investing and Financing Activities:                               |   |                    |    |   |   |   |   |   |
| Capital      Expenditures Funded Through Capital Leases                                      |   | $                       | 1,360   |   |   | $ | 571 |   |
| Collateralized      Borrowings Incurred for Operating Lease Equipment                        |   | $                       | 1,968   |   |   | $ | 782 |   |

----

table of contents

| 1.   | Basis ofPresentation |
|----------------|----------------------|

| 2.   | Newly      Adopted Accounting Pronouncements |
|----------------|----------------------------------------------|

| 3.   | Management      Actions |
|----------------|-------------------------|

----

table of contents

|                                 |   | Severance,      Early Retirement and Related Costs |   |
|--------------------------------------|--------|----------------------------------------------------|--------|
| 2008      workforce reduction action |   | $                                                  | 14,261 |   |
| Cash      payments                   |   |                                               | (355   | ) |
| Foreign      currency adjustments    |   |                                               | 5      |   |
| Balance      as of December 31, 2008 |   |                                               | 13,911 |   |
| Cash      payments                   |   |                                               | (6,390 | ) |
| Foreign      currency adjustments    |   |                                               | (318   | ) |
| Adjustment      of accrual           |   |                                               | (1,328 | ) |
| Balance      as of March 31, 2009    |   | $                                                  | 5,875  |   |
|                                 |   |                                               |   |   |

| 4.   | Acquisitions      and Divestitures |
|----------------|------------------------------------|

----

table of contents

| Current      Assets               |   | $      | 14,994  |   |
|-----------------------------------|--------|--------|---------|--------|
| Identified      intangible assets |   |   | 34,443  |   |
| Goodwill                          |   |   | 48,205  |   |
| Other      long-term assets       |   |   | 6,822   |   |
| Total      assets acquired        |   |   | 104,464 |   |
| Current      liabilities          |   |   | 11,278  |   |
| Long-term      liabilities        |   |   | 9,219   |   |
| Total      liabilities assumed    |   |   | 20,497  |   |
| Net      assets acquired          |   | $      | 83,967  |   |
|                              |   |   |    |   |

|                                             |   | Three      Months Ended |       |
|--------------------------------------------------|--------|-------------------------|------------|
|                                             |   | March      31           |       |
|                                             |   | 2009                    |       |   | 2008 |   |
| Pro      forma net sales                         |   | $                       | 128,647    |   |   | $ | 177,771 |   |
| Pro      forma net earnings (loss)               |   |                    | (41,746    | ) |   |   | 5,610 |   |
|                                             |   |                    |       |   |   |   |   |   |
| Pro      forma earnings (loss) per share:        |   |                    |       |   |   |   |   |   |
| Basic                                            |   |                    | (2.29      | ) |   |   | 0.30 |   |
| Diluted                                          |   |                    | (2.29      | ) |   |   | 0.30 |   |
|                                             |   |                    |       |   |   |   |   |   |
| Weighted      average common shares outstanding: |   |                    |       |   |   |   |   |   |
| Basic                                            |   |                    | 18,262,257 |   |   |   | 18,441,002 |   |
| Diluted                                          |   |                    | 18,262,257 |   |   |   | 18,844,504 |   |

----

table of contents

| 5.   | Inventories |
|----------------|-------------|

|                                                     |   | March      31, |    |   | December      31, |   |
|----------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                                                     |   | 2009           |    |   | 2008              |   |
| Inventories      carried at LIFO:                        |   |           |    |   |              |   |
| Finished      goods                                      |   | $              | 47,593  |   |              | $      | 52,289 |   |
| Raw      materials, production parts and work-in-process |   |           | 21,273  |   |              |   | 17,468 |   |
| LIFO      reserve                                        |   |           | (32,405 | )      |              |   | (32,481 | ) |
| Total      LIFO inventories                              |   |           | 36,461  |   |              |   | 37,276 |   |
|                                                     |   |           |    |   |              |   |   |   |
| Inventories      carried at FIFO:                        |   |           |    |   |              |   |   |   |
| Finished      goods                                      |   |           | 16,210  |   |              |   | 17,200 |   |
| Raw      materials, production parts and work-in-process |   |           | 14,092  |   |              |   | 12,352 |   |
| Total      FIFO inventories                              |   |           | 30,302  |   |              |   | 29,552 |   |
| Total      inventories                                   |   | $              | 66,763  |   |              | $      | 66,828 |   |
|                                                     |   |           |    |   |              |   |   |   |

| 6.   | Goodwill      and Intangible Assets |
|----------------|-------------------------------------|

----

table of contents

|                                        |   | Three      Months Ended |    |
|---------------------------------------------|--------|-------------------------|---------|
|                                        |   | March      31           |    |
| Balance      at December 31, 2008 |   | $                       | 62,095  |   |
| Additions                                   |   |                    | 1,550   |   |
| Impairment                                  |   |                    | (43,363 | ) |
| Foreign      currency fluctuations          |   |                    | (1,246  | ) |
| Balance      at March 31, 2009         |   | $                       | 19,036  |   |
|                                        |   |                    |    |   |

|                                           |   | Customer      Lists,   |   |   |            |   |   |       |   |   |   |   |
|------------------------------------------------|--------|------------------------|--------|--------|-----------------|--------|--------|------------|--------|--------|--------|--------|
|                                           |   | Service      Contracts |   |   |            |   |   |       |   |   |   |   |
|                                           |   | and      Order Book    |   |   | Trade      Name |   |   | Technology |   |   | Total  |   |
| Balance      as of March 31, 2009:             |   |                   |   |   |            |   |   |       |   |   |   |   |
| Original      cost                             |   | $                      | 29,758 |   |            | $      | 6,659  |       |   | $      | 4,284  |   |   | $ | 40,701 |   |
| Accumulated      amortization                  |   |                   | (2,983 | )      |            |   | (657   | )          |   |   | (931   | )      |   |   | (4,571 | ) |
| Foreign      currency fluctuations             |   |                   | (6,476 | )      |            |   | (1,697 | )          |   |   | (581   | )      |   |   | (8,754 | ) |
| Carrying      value                            |   | $                      | 20,299 |   |            | $      | 4,305  |       |   | $      | 2,772  |   |   | $ | 27,376 |   |
| Weighted-average      original life (in years) |   |                   | 14     |   |            |   | 3      |       |   |   | 12     |   |   |   |   |   |
|                                           |   |                   |   |   |            |   |   |       |   |   |   |   |   |   |   |   |
| Balance      as of December 31, 2008:          |   |                   |   |   |            |   |   |       |   |   |   |   |   |   |   |   |
| Original      cost                             |   | $                      | 29,866 |   |            | $      | 6,659  |       |   | $      | 4,285  |   |   | $ | 40,810 |   |
| Accumulated      amortization                  |   |                   | (2,463 | )      |            |   | (573   | )          |   |   | (847   | )      |   |   | (3,883 | ) |
| Foreign      currency fluctuations             |   |                   | (6,067 | )      |            |   | (1,633 | )          |   |   | (486   | )      |   |   | (8,186 | ) |
| Carrying      value                            |   | $                      | 21,336 |   |            | $      | 4,453  |       |   | $      | 2,952  |   |   | $ | 28,741 |   |
| Weighted-average      original life (in years) |   |                   | 14     |   |            |   | 3      |       |   |   | 12     |   |   |   |   |   |
|                                           |   |                   |   |   |            |   |   |       |   |   |   |   |   |   |   |   |

| Remaining      2009 |   | $      | 2,904  |   |
|---------------------|--------|--------|--------|--------|
| 2010                |   |   | 3,872  |   |
| 2011                |   |   | 3,866  |   |
| 2012                |   |   | 2,215  |   |
| 2013                |   |   | 1,829  |   |
| Thereafter          |   |   | 12,690 |   |
| Total               |   | $      | 27,376 |   |
|                |   |   |   |   |

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table of contents

| 7.   | Short-Term      Borrowings and Long-Term Debt |
|----------------|-----------------------------------------------|

|                            |   | March      31, |   |   | December      31, |   |
|---------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                            |   | 2009           |   |   | 2008              |   |
| Short-term      borrowings:     |   |           |   |   |              |   |
| Bank      borrowings            |   | $              | -      |   |              | $      | - |   |
| Long-Term      Debt:            |   |           |   |   |              |   |   |   |
| Bank      borrowings            |   |           | 58     |   |              |   | 63 |   |
| Credit      facility borrowings |   |           | 83,500 |   |              |   | 87,500 |   |
| Collateralized      borrowings  |   |           | 1,984  |   |              |   | 1,758 |   |
| Capital      lease obligations  |   |           | 6,345  |   |              |   | 6,018 |   |
| Total      Long-Term Debt       |   |           | 91,887 |   |              |   | 95,339 |   |
| Less:      current portion      |   |           | 4,253  |   |              |   | 3,946 |   |
| Long-term      portion          |   | $              | 87,634 |   |              | $      | 91,393 |   |
|                            |   |           |   |   |              |   |   |   |

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table of contents

| 8.   | Fair      Value of Financial Instruments |
|----------------|------------------------------------------|

| §   | Level      1: Observable inputs such as quoted prices (unadjusted) in active markets      for identical assets orliabilities. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| §   | Level      2: Inputs other than quoted prices that are observable for the asset or      liability, either directly or indirectly. These include quoted prices for      similar assets or liabilities in active markets and quoted prices for      identical or similar assets or liabilities in markets that are not      active. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| §   | Level      3: Unobservable inputs that reflect the reporting entity’s own      assumptions. |
|--------------------|---------------------------------------------------------------------------------------------------|

|                                             |   | Fair   |   |   |         |   |   |         |   |   |         |   |
|--------------------------------------------------|--------|--------|--------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                             |   | Value  |   |   | Level 1 |   |   | Level      2 |   |   | Level 3 |   |
| Assets:                                          |   |   |   |   |         |   |   |         |   |   |         |   |
| Cash      and Cash Equivalents                   |   | $      | 26,699 |   |         | $      | 26,699 |         |   | $      | -            |   |   | $ | - |   |
| Total      Assets                                |   | $      | 26,699 |   |         | $      | 26,699 |         |   | $      | -            |   |   | $ | - |   |
| Liabilities:                                     |   |   |   |   |         |   |   |         |   |   |         |   |   |   |   |   |
| Foreign      currency forward exchange contracts |   |   | 596    |   |         |   | -      |         |   |   | 596          |   |   |   | - |   |
| Total      Liabilities                           |   | $      | 596    |   |         | $      | -      |         |   | $      | 596          |   |   | $ | - |   |
|                                             |   |   |   |   |         |   |   |         |   |   |         |   |   |   |   |   |

| 9.   | Retirement      Benefit Plans |
|----------------|-------------------------------|

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|                                               |   | Three      Months Ended |   |
|----------------------------------------------------|--------|-------------------------|--------|
|                                               |   | March      31           |   |
|                                               |   | 2009                    |   |   | 2008 |   |
| Pension      Benefits:                             |   |                    |   |   |   |   |
| Service      cost                                  |   | $                       | 201    |   |   | $ | 222 |   |
| Interest      cost                                 |   |                    | 593    |   |   |   | 643 |   |
| Expected      return on plan assets                |   |                    | (734   | ) |   |   | (808 | ) |
| Recognized      actuarial (gain) loss              |   |                    | (12    | ) |   |   | (57 | ) |
| Amortization      of transition (asset) obligation |   |                    | (5     | ) |   |   | (6 | ) |
| Amortization      of prior service cost            |   |                    | 139    |   |   |   | 139 |   |
| Foreign      currency                              |   |                    | (33    | ) |   |   | 65 |   |
| Net      periodic benefit cost                     |   | $                       | 149    |   |   | $ | 198 |   |
|                                               |   |                    |   |   |   |   |   |   |
| Postretirement      Medical Benefits:              |   |                    |   |   |   |   |   |   |
| Service      cost                                  |   | $                       | 36     |   |   | $ | 31 |   |
| Interest      cost                                 |   |                    | 207    |   |   |   | 193 |   |
| Amortization      of prior service cost            |   |                    | (145   | ) |   |   | (145 | ) |
| Net      periodic benefit cost                     |   | $                       | 98     |   |   | $ | 79 |   |

| 10.   | Guarantees |
|-----------------|------------|

|                               |   | Three      Months Ended |   |
|------------------------------------|--------|-------------------------|--------|
|                               |   | March      31           |   |
|                               |   | 2009                    |   |   | 2008 |   |
| Beginning      balance             |   | $                       | 6,018  |   |   | $ | 6,950 |   |
| Additions      charged to expense  |   |                    | 1,436  |   |   |   | 2,143 |   |
| Acquired      reserves             |   |                    | 17     |   |   |   | - |   |
| Foreign      currency fluctuations |   |                    | (68    | ) |   |   | 164 |   |
| Claims      paid                   |   |                    | (1,868 | ) |   |   | (2,154 | ) |
| Ending      balance                |   | $                       | 5,535  |   |   | $ | 7,103 |   |

| 11.   | Income      Tax |
|-----------------|-----------------|

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| 12.   | Stock-Based      Compensation |
|-----------------|-------------------------------|

|                                             |   | Three      Months Ended |   |
|--------------------------------------------------|--------|-------------------------|--------|
|                                             |   | March      31           |   |
|                                             |   | 2009                    |   |   | 2008 |   |
| Stock      options and stock appreciation rights |   | $                       | 107    |   |   | $ | 69 |   |
| Restricted      share awards                     |   |                    | 194    |   |   |   | 226 |   |
| Performance      share awards                    |   |                    | -      |   |   |   | 240 |   |
| Share-based      liabilities                     |   |                    | (15    | ) |   |   | 20 |   |
| Total      stock-based compensation expense      |   | $                       | 286    |   |   | $ | 555 |   |
|                                             |   |                    |   |   |   |   |   |   |

During the first three months of 2009 we granted 32,266restricted shares.  The grant date fair value of each share awardedwas $10.08.  Restricted share awards typically have a two or threeyear vesting period from the effective date of grant. The total fair value ofshares vested during the three months ended March 31, 2009 and 2008 was $133 and$771, respectively.

| 13.   | Earnings      (Loss) Per Share Computations |
|-----------------|---------------------------------------------|

|                                               |   | Three      Months Ended |       |
|----------------------------------------------------|--------|-------------------------|------------|
|                                               |   | March      31           |       |
|                                               |   | 2009                    |       |   | 2008 |   |
| Numerator:                                         |   |                    |       |   |   |   |
| Net      Earnings (Loss)                           |   | $                       | (41,746    | ) |   | $ | 5,235 |   |
| Denominator:                                       |   |                    |       |   |   |   |   |   |
| Basic      - weighted average outstanding shares   |   |                    | 18,262,257 |   |   |   | 18,441,002 |   |
| Effect      of dilutive securities:                |   |                    |       |   |   |   |   |   |
| Employee      stock options                        |   |                    | -          |   |   |   | 403,502 |   |
| Diluted      - weighted average outstanding shares |   |                    | 18,262,257 |   |   |   | 18,844,504 |   |
| Basic      Earnings (Loss) per Share               |   | $                       | (2.29      | ) |   | $ | 0.28 |   |
| Diluted      Earnings (Loss) per Share             |   | $                       | (2.29      | ) |   | $ | 0.28 |   |
|                                               |   |                    |       |   |   |   |   |   |

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| 14.   | Comprehensive      Income (Loss) |
|-----------------|----------------------------------|

|                                          |   | Three      Months Ended |    |
|-----------------------------------------------|--------|-------------------------|---------|
|                                          |   | March      31           |    |
|                                          |   | 2009                    |    |   | 2008 |   |
| Net      Earnings (Loss)                      |   | $                       | (41,746 | ) |   | $ | 5,235 |   |
| Foreign      currency translation adjustments |   |                    | (2,599  | ) |   |   | 2,388 |   |
| Pension      adjustments                      |   |                    | (24     | ) |   |   | (68 | ) |
| Comprehensive      Income (Loss)              |   | $                       | (44,369 | ) |   | $ | 7,555 |   |

| 15.   | Segment      Reporting |
|-----------------|------------------------|

|                             |   | Three      Months Ended |    |
|----------------------------------|--------|-------------------------|---------|
|                             |   | March      31           |    |
|                             |   | 2009                    |    |   | 2008 |   |
| North      America               |   | $                       | 73,367  |   |   | $ | 98,243 |   |
| Europe,      Middle East, Africa |   |                    | 41,087  |   |   |   | 52,721 |   |
| Other      International         |   |                    | 14,193  |   |   |   | 17,636 |   |
| Total                            |   | $                       | 128,647 |   |   | $ | 168,600 |   |

| 16.   | Related      Party Transactions |
|-----------------|---------------------------------|

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|                                                 |   | Three      Months Ended |    |
|------------------------------------------------------|--------|-------------------------|---------|
|                                                 |   | March      31           |    |
|                                                 |   | 2009                    |    |   | % |   |   | 2008 |   |   | % |   |
| Net      Sales                                       |   | $                       | 128,647 |   |   |   | 100.0 |   |   | $ | 168,600 |   |   |   | 100.0 |   |
| Cost      of Sales                                   |   |                    | 75,922  |   |   |   | 59.0 |   |   |   | 98,960 |   |   |   | 58.7 |   |
| Gross      Profit                                    |   |                    | 52,725  |   |   |   | 41.0 |   |   |   | 69,640 |   |   |   | 41.3 |   |
| Operating      Expense:                              |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research      and Development Expense                |   |                    | 5,692   |   |   |   | 4.4 |   |   |   | 6,038 |   |   |   | 3.6 |   |
| Selling      and Administrative Expense              |   |                    | 45,460  |   |   |   | 35.3 |   |   |   | 55,079 |   |   |   | 32.7 |   |
| Goodwill      Impairment Charge                      |   |                    | 43,363  |   |   |   | 33.7 |   |   |   | - |   |   |   | - |   |
| Total      Operating Expenses                        |   |                    | 94,515  |   |   |   | 73.5 |   |   |   | 61,117 |   |   |   | 36.2 |   |
| Profit      (Loss) from Operations                   |   |                    | (41,790 | ) |   |   | (32.5 | ) |   |   | 8,523 |   |   |   | 5.1 |   |
| Other      Income (Expense):                         |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Income                                 |   |                    | 111     |   |   |   | 0.1 |   |   |   | 313 |   |   |   | 0.2 |   |
| Interest      Expense                                |   |                    | (652    | ) |   |   | (0.5 | ) |   |   | (488 | ) |   |   | (0.3 | ) |
| Net      Foreign Currency Transaction Gains (Losses) |   |                    | (361    | ) |   |   | (0.3 | ) |   |   | (759 | ) |   |   | (0.5 | ) |
| ESOP      Income                                     |   |                    | 243     |   |   |   | 0.2 |   |   |   | 702 |   |   |   | 0.4 |   |
| Other      Income (Expense), Net                     |   |                    | 20      |   |   |   | - |   |   |   | 5 |   |   |   | - |   |
| Total      Other Income (Expense), Net               |   |                    | (639    | ) |   |   | (0.5 | ) |   |   | (227 | ) |   |   | (0.1 | ) |
| Profit      (Loss) Before Income Taxes               |   |                    | (42,429 | ) |   |   | (33.0 | ) |   |   | 8,296 |   |   |   | 4.9 |   |
| Income      Tax Expense (Benefit)                    |   |                    | (683    | ) |   |   | (0.5 | ) |   |   | 3,061 |   |   |   | 1.8 |   |
| Net      Earnings (Loss)                             |   | $                       | (41,746 | ) |   |   | (32.5 | ) |   | $ | 5,235 |   |   |   | 3.1 |   |
| Earnings      (Loss) per Diluted Share               |   | $                       | (2.29   | ) |   |   |   |   |   | $ | 0.28 |   |   |   |   |   |
|                                                 |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                  |   | %      Change from 2008 |
|-----------------------|--------|------------------------------|
| Organic      Growth:  |   |
|                  | Volume | (22%)                        |
|                  | Price  | 1%                           |
|                  |   | (21%)                        |
| Foreign      Currency | (6%)   |
| Acquisitions          | 3%     |
|                  | Total  | (24%)                        |
|                  |   |                         |

| ·   | an      organic decline of 21%, driven almost entirely by a decline in our base      business volume due to the global economic  downturn; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      unfavorable direct foreign currency exchange impact of 6%;    and |
|--------------------|---------------------------------------------------------------------------|

| ·   | an      increase of 3% in sales due to our March 28, 2008 acquisition of Alfa and      our February 29, 2008 acquisition of Applied  Sweepers. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                |   | Three      Months Ended |    |
|-------------------------------------|--------|-------------------------|---------|
|                                |   | March      31           |    |
|                                |   | 2009                    |    |   | 2008 |   |   | % |   |
| North      America                  |   | $                       | 73,367  |   |   | $ | 98,243 |   |   |   | (25.3 | ) |
| Europe,      Middle East and Africa |   |                    | 41,087  |   |   |   | 52,721 |   |   |   | (22.1 | ) |
| Other      International            |   |                    | 14,193  |   |   |   | 17,636 |   |   |   | (19.5 | ) |
| Total                               |   | $                       | 128,647 |   |   | $ | 168,600 |   |   |   | (23.7 | ) |
|                                |   |                    |    |   |   |   |   |   |   |   |   |   |

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|                                                              |   | Three      Months Ended |   |
|-------------------------------------------------------------------|--------|-------------------------|--------|
|                                                              |   | March      31           |   |
|                                                              |   | 2009                    |   |   | 2008 |   |
| Operating      Activities                                         |   | $                       | 11,173 |   |   | $ | (5,887 | ) |
| Investing      Activities:                                        |   |                    |   |   |   |   |   |   |
| Purchases      of Property, Plant and Equipment, Net of Disposals |   |                    | (3,561 | ) |   |   | (7,408 | ) |
| Acquistions      of Businesses, Net of Cash Acquired              |   |                    | (2,295 | ) |   |   | (81,365 | ) |
| Financing      Activities                                         |   |                    | (7,627 | ) |   |   | 86,547 |   |
| Effect      of Exchange Rate Changes on Cash and Cash Equivalents |   |                    | (276   | ) |   |   | 312 |   |
| Net      Increase (Decrease) in Cash and Cash Equivalents         |   | $                       | (2,586 | ) |   | $ | (7,801 | ) |
|                                                              |   |                    |   |   |   |   |   |   |

|   |   | March      31, 2009 |   | December      31, 2008 |   | March      31, 2008 |
|--------|--------|---------------------|--------|------------------------|--------|---------------------|
| DSO    |   | 75                  |   | 77                     |   | 67                  |
| DIOH   |   | 121                 |   | 101                    |   | 95                  |

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| ·   | Geopolitical,      economic and credit market uncertainty throughout the    world. |
|--------------------|------------------------------------------------------------------------------------|

| ·   | Cost      and availability of financing for ourselves and our    suppliers. |
|--------------------|-----------------------------------------------------------------------------|

| ·   | Our      customers’ ability to obtain credit to fund equipment      purchases. |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | Successful      integration of acquisitions, including ability to carry remaining goodwill      at current values. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | Ability      to accurately project future financial and operating results and to      achieve such projections. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Ability      to achieve operational efficiencies while reducing expenses and      headcount. |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Fluctuations      in the cost or availability of raw materials and purchased      components. |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | Ability      to achieve anticipated global sourcing cost  reductions. |
|--------------------|-----------------------------------------------------------------------|

| ·   | Success      and timing of new technologies andproducts. |
|--------------------|----------------------------------------------------------|

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| ·   | Unforeseen      product quality problems. |
|--------------------|-------------------------------------------|

| ·   | Effects      of litigation, including threatened or pending  litigation. |
|--------------------|--------------------------------------------------------------------------|

| ·   | Relative      strength of the U.S. dollar, which affects the cost of our materials and      products purchased and soldinternationally. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Ability      to effectively manage organizational changes, including workforce      reductions. |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | Ability      to achieve anticipated savings from our workforce    reductions. |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Ability      to attract and retain keypersonnel. |
|--------------------|--------------------------------------------------|

| ·   | Effects      of potential impairment write-down of our intangible asset      values. |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | Ability      to acquire, retain and protect proprietary intellectual property      rights. |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | Potential      for increased competition in ourbusiness. |
|--------------------|----------------------------------------------------------|

| ·   | Changes      in laws, including changes in accounting standards and taxation      changes. |
|--------------------|--------------------------------------------------------------------------------------------|

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Ite

|                       |   |                                                                                                     |   |                |                                                                                                                                                 |                     | Total      Number of                                                                                                                        |                     |   |
|----------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|--------|
|                       |   |                                                                                                     |   |                |                                                                                                                                                 |                     | Shares      Purchased                                                                                                                       |                     |   |
|                       |   |  Total      Number                                                                                  |   |                |                                                                                                                                                 | as      Part of Publicly |                                                                                                                                        | Maximum      Number of   |
| For      the Quarter Ended |   | of      Shares                                                                                           |   | Average      Price  |                                                                                                                                                 | Announced      Plans     |                                                                                                                                        | Shares      that May Yet |
| March      31, 2009        |   | Purchased      (1)                                                                                       |   | Paid      Per Share |                                                                                                                                                 | or      Programs         |                                                                                                                                        | Be      Purchased        |
| January      1 - 31, 2009  |   |                  14 |   |                |  $                   15.80                       |                     |                        - |                     |   |                           288,874 |
| February      1 - 28, 2009 |   |                401            |   |                |                       12.90            |                     |                        - |                     |   |                           288,874 |
| March      1 - 31, 2009    |   |                974            |   |                |                         8.37 |                     |                        - |                     |   |                           288,874 |
| Total                      |   |             1,389                            |   |                |  $                     9.75            |                     |                        - |                     |   |                           288,874 |
|                       |   |                                                                                                     |   |                |                                                                                                                                                 |                     |                                                                                                                                        |                     |   |   |

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Exhi

| Item      # |   | Description                                                        |                                                                                                     | Method      of Filing                                                                                                                             |
|-------------|--------|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| 3i          |   | Restated      Articles of Incorporation                            |                                                                                                     | Incorporated      by reference to Exhibit 3i to the Company’s report on Form 10-Q for the      quarterly period ended June 30, 2006.        |
| 3ii         |   | Certificate      of Designation                                    |                                                                                                     | Incorporated      by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K      for the year ended December 31, 2006.        |
| 3iii        |   | Amended      and Restated By-Laws                                  |                                                                                                     | Incorporated      by reference to Exhibit 3ii to the Company’s Annual Report on Form 10-K      for the fiscal year ended December 31, 1999. |
| 10.1        |   | Amendment      No. 2 to Credit Agreement dated as of March 4, 2009 | Incorporated      by reference to Exhibit 10.1 to the Company’s Form 8-K dated March 4,      2009. |
| 10.2        |   | Pledge      and Security Agreement dated as of March 4, 2009       |                                                                                                     | Incorporated      by reference to Exhibit 10.2 to the Company’s Form 8-K dated March 4,      2009.                                          |
| 31.1        |   | Rule      13a-14(a)/15d-14(a) Certification of CEO                 |                                                                                                     | Filed      herewith electronically.                                                                                                               |
| 31.2        |   | Rule      13a-14(a)/15d-14(a) Certification of CFO                 |                                                                                                     | Filed      herewith electronically.                                                                                                               |
| 32.1        |   | Section      1350 Certification of CEO                             |                                                                                                     | Filed      herewith electronically.                                                                                                               |
| 32.2        |   | Section      1350 Certification of CFO                             |                                                                                                     | Filed      herewith electronically.                                                                                                               |

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|   |   |              |   | TENNANT      COMPANY                                                                                                |
|--------|--------|-------------------|--------|---------------------------------------------------------------------------------------------------------------------|
|   |   |              |   |                                                                                                                |
| Date:  |   | May      11, 2009 |   | /s/   H.      Chris Killingstad                                                                      |
|   |   |              |   | H.      Chris KillingstadPresident      and Chief Executive Officer                                                 |
|   |   |              |   |                                                                                                                |
| Date:  |   | May      11, 2009 |   | /s/   Thomas      Paulson                                                                            |
|   |   |              |   | Thomas      PaulsonVice      President and Chief Financial Officer(Principal      Financial and Accounting Officer) |

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